Tamil Nadu lost Rs 80,000 crore in two months: Study

Trade and industries are under severe stress and the situation remains grim,” said industrialist K.E. Raghunathan, National president, AIMO.

Commenting on the jallikattu protests, Raghunathan said at least 10 days of business had been lost and the demonetisation impact was still haunting manufacturing units.

Chennai: Tamil Nadu has lost 20 working days in last two months alone. Revenue loss, according to All India Manufacturers Organisation (AIMO), is estimated to be Rs 80,000 crore.

“Starting from former CM Jayalalithaa’s demise, the state has been hit by factors like Cyclone Vardah, demonetisation, jallikattu protests and now drought. Trade and industries are under severe stress and the situation remains grim,” said industrialist K.E. Raghunathan, National president, AIMO.

Warning that public and traders will feel severe consequences by March, he said the TN trade industry loses Rs 4,000 crore, if a business day is lost.

Small commercial units struck by cyclone Vardah in Chennai, Cuddalore, Kancheepuram and Puducherry are yet to recover from the damages as insurance companies have not settled the claims citing vague reasons, industrialist K.E. Raghunathan, National president, AIMO said.

Commenting on the jallikattu protests, Raghunathan said at least 10 days of business had been lost and the demonetisation impact was still haunting manufacturing units.

The state under the chairmanship of Chief Minister O. Panneerselvam should immediately set up a high level committee to assess the damage and also hold talks with trade organisations for a timely policy.

“If this not done immediately AIMO feels that current trend will hamper the state in attracting short term and long term investments,” he said adding that even the release of movies in Tamil Nadu is getting delayed.

He also emphasised that the tourism and the award of contracts by the government has taken a beating in the past two months. When contacted, a senior government official who was also part of the 2015 TN global investors meet said that there had been some unexpected events in the state since last December. “We are facing tough competitions from Telangana and Andhra when it comes to attracting investments and the state is scheduled to hold its next investors meet in September 2017 to improve the situation,” the official said. The overall loss estimated by Tamil Nadu revenue administration is around Rs 25,000 crore due to drought and Vardah, he said. “We are pushing for immediate release of relief package from Centre and are hoping for funds at the earliest,” the official said.